| Buy | |||
|---|---|---|---|
| Company | Publication | Reason | Price tipped |
|
Big Yellow Group (BYG)
REITS |
The Times | The storage provider is focusing on existing facilities in the southeast and occupancy rates should climb as the sites mature. Earnings look secure and a yield of 6.7% is attractive. | 350p/218p* 282p |
|
Bloomsbury Publishing (BMY)
Media |
The Daily Telegraph | This publisher’s digital sales should benefit from the trend towards e-books, while the academic unit is also doing well. Buy on a February 2013 price/earnings (p/e) ratio of 9.5. | 134p/90p 115p |
|
Booker Group (BOK)
Food |
The Times | Total sales at the food wholesaler have increased by 7.3% and the shares have doubled in the past two years. It’s a steady play on a p/e of 16 and a yield of 3%. | 86p/63p 78p |
|
Breedon Aggregates (BREE)
Building materials |
Investors Chronicle | Breedon boasts 200 million tonnes of reserves and management with an impressive track record. A potential deal to buy 11% of UK market share offers huge growth prospects. Buy. | 25p/17p 21p |
|
Cookson Group (CKSN)
Misc manufacturing |
Shares | A possible demerger of this industrial group’s two main operating units (ceramics and performance materials) could increase its market value by more than 35%. Buy. | 755p/386p 660p |
|
CSR (CSR) Semiconductors |
Investors Chronicle | Micro-chip maker CSR has cut exposure to low-margin products and now makes 57% of sales from high-margin platforms. It’s a speculative buy but it looks good value on a p/e of 11. | 372p/153p 213p |
|
Dignity (DTY) Funeral services |
Shares | Dignity benefits from a relatively predictable market, meaning it offers defensive stability in times of volatility. Buy ahead of potential upgrades on a 2013 p/e of 12.2. | 866p/722p 816p |
|
EnQuest (ENQ)
Oil & gas |
The Daily Telegraph | Despite concerns over a falling oil price, EnQuest should meet production targets with a number of key purchases. The shares trade on a December 2012 p/e of 11.1, falling to 9.1. | 136p/84p 117p |
|
FirstGroup (FGP) Transportation |
The Times | The train and bus operator is having some operational issues but could benefit from the bidding round for British rail contracts. It’s a speculative buy on a p/e of seven, yielding 11.5%. | 376p/190p 205p |
|
HICL Infrastructure (HICL)
Closed-end fund |
The Daily Telegraph | The infrastructure fund has a strong pipeline of deals in Britain and abroad, and offers a relatively low-risk investment in a time of uncertainty. It has a prospective yield of 5.9%. | 124p/112p 118p |
|
Informa (INF)
Media |
The Daily Telegraph | The media services firm saw organic revenue fall 4.1% in first-quarter results. But on a December 2012 p/e of 8.9 and yielding 5%, the shares are undervalued. Buy. | 453p/312p 371p |
|
James Fisher (FSJ) Transportation |
The Daily Telegraph | Shares in this specialist marine services firm fell from around 600p in May due to troubles in the eurozone. The fall is unwarranted and the shares are a buy on a December 2012 p/e of 10.3. | 620p/420p 541p |
|
Johnson Matthey (JMAT)
Chemicals |
Shares | Global auto demand and tighter legislation are boosting sales of Matthey’s autocatalysts, used in car exhausts. Buy ahead of 7 June finals as Numis expects results to beat consensus. | 2,426p/1,484p 2,151p |
|
Marston’s (MARS) Beverages |
Shares | A first return to dividend growth since 2008 makes this pub operator a good income play on a prospective yield of 6.2% – with 5% progressive dividend growth – twice covered by earnings. | 109p/83p 99p |
|
Quindell Portfolio (QPP) Aim |
The Mail on Sunday | Quindell offers a range of insurance claim management services, making it a useful partner for large insurers looking to bring down costs. Deals with leading firms are expected this year. | 8.5p/2p 5.5p |
|
Randgold Resources (RRS) Mining |
The Sunday Telegraph | The gold miner is set to raise production for 2012, despite issues in the Ivory Coast. Use a recent share-price drop on gold price uncertainty as an opportunity to buy on a p/e of 12.7. | 7,720p/4,480p 5,130p |
|
Restore (RST) Aim |
Shares | Restore’s document management, shredding and scanning operations are performing well, and the shares – after a rare fall – look cheap on a 2012 p/e of 9.3. | 96p/53p 85p |
|
Smiths Group (SMIN)
Misc. manufacturing |
Investors Chronicle | The conglomerate is cutting costs and making inroads into dynamic emerging markets (15% of revenues). It’s cheap compared to the sum of its parts. | 1,244p/852p 1,020p |
|
Telecom Plus (TEP) Telecommunications |
The Times | Telecom Plus has increased customer numbers and boosted pre-tax profits by 12% to the end of March. This good growth and income lift should have further to go. Buy. | 804p/519p 703p |
|
United Utilities (UU) Water |
Investors Chronicle | The water company boasts a secure and attractive dividend yield of 5.1% and looks cheap compared to rivals on a premium to adjusted regulatory capital value (RCV) of just 8%. Buy. | 658p/529p 629p |
|
Vodafone (VOD) Telecommunications |
The Daily Telegraph | A strong performance in Germany helped the mobile giant mitigate poor results in southern Europe. It’s an income play with a yield of 8.5%. | 182p/150p 172p |
| Sell | |||
| Company | Publication | Reason | Price tipped |
|
Facebook (US: FB)
Internet |
The Daily Telegraph | The social networking site faces many hurdles and, even after a 20% fall since its initial public offering, the shares should be avoided. | $45/$31 $32 |
|
Greggs (GRG)
Food |
Investors Chronicle | A decision to add VAT to pasties and sausage rolls has hit Gregg’s share price, while like-for-like sales were down 1.8% in the first 19 weeks of the year. The share price could fall further. | 564p/420p 453p |
|
Kesa Electricals (KESA)
Retail |
Shares | Weak market conditions in Europe are hitting this electrical goods firm’s like-for-like sales, down 5.9% for the fourth quarter to April. The shares could dip further on 20 June finals. Sell. | 152p/45p 52p |
|
Ophir Energy (OPHR) Oil & gas |
Shares | Shares in the east Africa-based oil explorer are up 92% since January, including a 7% increase in one week last month after successful well results in Tanzania. Take some profits. | 622p/179p 578p |
|
United Carpets (UCG)
Aim |
Shares | The retailer is suffering from a subdued housing market and weak consumer spending on ‘big ticket’ purchases, such as beds. Sell ahead of July results as the dividend looks vulnerable. | 8p/3.25p 4.5p |
| * 52-week high/low | |||